Urbana Corporation Closes Unit Offering for Proceeds of Approximately $75 million
Toronto, Ontario – July 12, 2007 – Urbana Corporation (“Urbana”) (TSX: URB, URB.A, URB.WT, URB.WT.A) is pleased to announce that it completed a closing relating to its previously announced short form prospectus offering (the “Offering”) of units (“Units”) through Blackmont Capital Inc., as lead agent for a syndicate including CIBC World Markets Inc., National Bank Financial Inc., Raymond James Ltd., TD Securities Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Wellington West Capital Inc. and GMP Securities L.P. (the “Agents”). 24,193,600 Units have been sold for gross proceeds of approximately $75 million.
Each Unit sold pursuant to the Offering for $3.10 consists of one non-voting Class A share (“Non-Voting Class A Share”) in the capital of Urbana and one-half of one Series A Non-Voting Class A Share purchase warrant (“Warrant”). Each whole Warrant entitles the holder to purchase one Non-Voting Class A Share at an exercise price of $3.75 until July 12, 2009. The Units separated into Non-Voting Class A Shares and Warrants immediately upon the closing today.
The net proceeds of the Offering will be used to purchase additional participations in various stock exchanges as the opportunity arises and for general corporate purposes.
Urbana has granted the agents an over-allotment option which entitles the agents to purchase additional Non-Voting Class A Shares and Warrants to a maximum of 15% of the Non-Voting Class A Shares and Warrants issued pursuant to the Offering for a period of 30 days following today’s closing.
A copy of the prospectus may be obtained on SEDAR at www.sedar.com. Caldwell Investment Management Ltd., which acts as investment manager for Urbana, is wholly owned by Caldwell Financial Ltd. (“Caldwell Financial”). Caldwell Financial owns 40.0% of Urbana’s common shares, 300,000 Non-Voting Class A Shares and 150,000 Warrants and is controlled by Thomas S. Caldwell, the President of Urbana. Thomas S. Caldwell beneficially owns directly or indirectly 965,927 common shares of Urbana representing 9.7% of Urbana’s outstanding common shares and exercises control or direction over the 4,000,000 common shares of Urbana owned by Caldwell Financial through his interest in Caldwell Financial. In total, Thomas S. Caldwell owns and exercises control or direction over approximately 49.7% of Urbana’s common shares.
Please contact Elizabeth Naumovski, Investor Relations at 416-595-9106 for further information.